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Crypto exchange CEO faces US government charges

Crypto exchange CEO faces US government charges

Adam Todd, the founder of crypto futures trading platform Digitex Futures Exchange, is being sued. The US Attorney’s Office for the Southern District of Florida suspects that the CEO intentionally violated the Bank Secrecy Act.

The crypto boss’s allegations

Specifically, Todd is accused of illegally operating Digitex as an unregistered crypto futures trading platform. This would affect the period between January 2018 and April 2022.

He allegedly did not take the necessary measures to prevent his platform from being used for money laundering. He could have achieved this by setting up programs that check who exactly his customers are and where their money comes from.

If Adam Todd is found to have broken the law, he could face up to five years in prison. The exact length of his sentence will be determined by a judge who will take into account United States sentencing guidelines and other important circumstances.

Previous punishment for market manipulation

Seven months ago, the US Commodity Futures Commission (CFTC) found Adam Todd guilty of several violations without his presence. This verdict was made because he attempted to artificially influence the price of Digitex’s own digital currency DGTX using an automated program.

In addition to the CFTC’s allegations, the judge prohibited Adam Todd and his companies from registering with the CFTC or trading on CFTC-supervised markets in the future. Todd must also repay $3.9 million and pay an additional $11.7 million in fines as punishment.

USDT scandal FTX

Unfortunately, scams are nothing new in the cryptocurrency world. In the wake of the FTX crisis, new details are coming to light. Sam Bankman-Fried, the founder of the now-bankrupt exchange, opened accounts with Deltec in 2018. This is how he made a profit during the last bull run by selling USDT before a payment was made.

The allegations now also focus on Deltec for facilitating these practices and on the law firm Sullivan & Cromwell for alleged complicity. Nevertheless, Deltec and Tether deny their role in the alleged fraud case.

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